Nautilus Pipeline Company, LLC

Original Volume No. 1

Effective Date: 12/01/1997, Docket: RP97-446-001, Status: Effective

First Revised Sheet No. 214 First Revised Sheet No. 214 : Effective

Superseding: Original Sheet No. 214

GENERAL TERMS AND CONDITIONS

35. ANNUAL CHARGE ADJUSTMENT CLAUSE

35.1 Purpose:

In order to recover the annual charges assessed by the

Commission under Section 382.202 of the Commission's

Regulations pursuant to the provisions of the

Commission's Order No. 472, this Section 35 of the

General Terms and Conditions is established to be

applicable to the Rate Schedules contained in Volume

No. 1 of Transporter's FERC Gas Tariff. Because

Transporter is electing to recover the annual charges

assessed by the Commission through the operation of

this Annual Charge Adjustment Clause, Transporter does

not intend to recover any annual charges recorded in

Account No. 928 in any Natural Gas Act Section 4 rate

case.

35.2 Basis for the Annual Charge Adjustment Clause:

The Rate Schedules specified in Section 35.1 hereof

shall include an Annual Charge Adjustment unit charge

(ACA unit charge) applicable to each Dth of gas

transported thereunder in the amount set forth on

Original Sheet No. 9 thereof. The ACA unit charge

shall be added to the volumetric rate of any Rate

Schedule with a reservation charge.

35.3 Filing Procedures:

Changes to the ACA unit charge must be filed annually

to reflect the annual charge unit rate authorized by

the Commission each fiscal year and are subject to the

notice requirements of Section 154.207 of the

Commission's Regulations. Transporter shall not

commence to collect the ACA unit charge until

Transporter has received authorization from the

Commission.